Do you want to start jewelry business?
Do you want to start a jewelry business? Well, if you have what it takes to design attractive and eye-catching jewelry and you also have a passion for it then it is probably the right business for you. The biggest benefit of starting this business is that it offers an extremely high ROI and never goes down during any part of the year because people don’t hesitate to spend cash on something which makes them look good.
But before you move on to starting this jewelry business plan, you will have to prepare a comprehensive business plan for jewelry. It will not only help you in startup but will also serve as the basis of your company’s future operations. In case you don’t know how to start a jewelry business or write a business plan for it, you can take help from this sample business plan for jewelry business startup named ‘NM Jewelry Store’.
2.1 The Business
NM Jewelry Store will be a licensed and insured jewelry manufacturing business that will provide high-quality, attractive and low-cost jewelry products to its customers. The business will be based in Manhattan.
NM Jewelry Store is a sole proprietorship owned by Nick Monty. Nick is a passionate Jewelry designer who has been in this industry for more than 10 years. The company’s main management framework comprises of sales executives, designers, and artisans.
You should carry out proper research to know your customers before you start your own jewelry business. Our customers include the married and committed couples as well as the teens and adults living in downtown Manhattan.
2.4 Business Target
Our business targets to be achieved within next three years are as follows:
3.1 Company Owner
NM Jewelry Store is a sole proprietorship owned by Nick Monty. Nick is a passionate jewelry designer who has been serving the jewelry industry for more than 10 years.
3.2 Why the Business is being started
Nick is passionate about designing jewelry and is known all over the United States due to his innovative designs. Nick’s specialty is to design extremely detailed jewelry sets using the proper mix of precious metals which also cost less than other similar sets available in the market. The jewelry business plan is being started with the aim of making profits in this industry by introducing extremely low-cost designs.
3.3 How the Business will be started
NM Jewelry Store will be started in downtown Manhattan in a leased location which was previously used by a travel agency. The facility will be used for making jewelry by artisans and designers and will also be used as a store to display the jewelry. In addition to the office furniture and the usual inventory, the company will procure computers, color printers, scanners, jewelry design software, jewelry cutting and anodizing equipment as well as the other necessary tools. The financial experts have forecasted following costs needed to start a jewelry business.
Services for customers
Before starting a jewelry store, you must decide what services/products will you offer to your customers. You can also take help from this jewelry business plan template in case you don’t know what services you can provide.
NM Jewelry Store will be a licensed and insured jewelry manufacturing business which will provide high-quality, attractive and low-cost jewelry products to its customers. Our main products/services include:
- Jewelry Products: Our main jewelry products that will be designed as well as manufactured by us include rings, necklaces, earring, anklets, bracelets, lockets, pendants, tie pins, shirt studs, brooches, and tiaras.
- Jewelry Sets: This category includes jewelry sets designed and manufactured by us. A jewelry set include similarly designed ring, necklace, earrings, and bracelets.
- Customized Jewelry: We will also make customized jewelry in accordance with the design requirements of our customers. The customers can either provide us with their desired designs or can tell us their requirements through any channel.
- Jewelry Repairing, Resizing and Polishing: We will also provide repairing, resizing and polishing services to our customers. These services are aimed at those people who receive jewelry in the gift but the sizes don’t match quite exactly and they have to resize them as per their size requirements. Similarly, the jewelry owners also need to regularly polish their jewelry products for a better look. These services are not aimed to directly generate revenue, instead, we aim to promote our products by providing these services to the jewelry owners.
Our jewelry products will be made from silver, gold, and titanium. Platinum will only be used in customized products at the request of customers. Customers can also order our products online via our official website.
Marketing Analysis of jewelry business
The most important component of an effective business plan for jewelry business is its accurate marketing analysis and a good business plan for jewelry business can only be developed after this stage. If you are starting on a smaller scale, you can do marketing analysis yourself by taking help from this sample jewelry business plan or any other jewelry business plan example available online. If you are starting on a larger scale, it is always best to seek the counsel of marketing experts for developing a good business plan for jewelry.
The success or failure of a business totally depends upon its marketing strategy for business which can only be developed on the basis of accurate marketing analysis. Therefore, it must be considered before developing the business plan for jewellery business.
Business Plan for Investors
5.1 Market Trends
The market and industry trends of a jewelry business plan can be learned from the internet or from this sample business plan for jewelry business. The United States is the third biggest jewelry market in the world. According to IBIS World, the jewelry industry is valued at $35 billion and has grown at a projected rate of 1.2% from 2011 to 2016. Currently, there are more than 62,000 jewelry stores in the United States which are responsible for employing more than 170,000 people. The sale of branded jewelry is less as compared to the sales from private jewelry stores. In short, jewelry industry has a lot of potential and can be immensely profitable provided that you plan your jewelry business successfully.
5.2 Marketing Segmentation
Our target market is the residential community living nearby at the 10 minutes’ drive from our office. The community consists of all types of people from varying backgrounds. As per the financial position, nearly half of the community has a monthly income ranging from $40k to $50k while nearly 10% people have incomes even around $100,000.
There are currently more than 738,000 households in Manhattan out of which 17.1% have children under the age of 18 living with them, 25.2% are married couples living together and 12.6% have a female householder with no husband present. 59.1% are non-families, out of which 48.0% of all households are made up of individuals and 10.9% have someone living alone who is 65 years of age or older.
It is very important to analyze the market segmentation of the future customers of your products or services because a successful and efficient marketing strategy can only be developed after we completely know our potential customers. Our experts have identified the following type of target audience which can become our future consumers:
The detailed marketing segmentation of our target audience is as follows:
Our first target group will be the married couples as well as the committed people. These people are most likely to buy jewelry products for each other. For instance, the engaged or married people often tend to buy jewelry products for their beloved on many occasions like Valentine’s day, birthdays, anniversaries. This group will be the biggest consumer of our products and hence our marketing strategy will be specifically built to attract them.
Our second target group comprises of teens who buy jewelry for themselves for wearing at parties, functions or in daily life. These teens usually can’t afford expensive products and often prefer the look of jewelry to its quality.
The third group comprises of adults who buy jewelry for their kids, family, friends or themselves. They are usually settled in their lives and can afford expensive products.
5.3 Business Target
Our main business targets to be achieved as milestones over the course of next three years are as follows:
- To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year
- To balance the initial cost of the startup with earned profits by the end of the first year
5.4 Product Pricing
After considering the market demands and the competitive environment, we have priced our products 10% cheaper as compared to our competitors, with prices starting from $100.
After identifying the market trends, market demand, and the potential customers of the startup, the next step is to define an effective strategy to attract the potential customers. Like marketing analysis, sales strategy is also an important component of a jewelry store business plan and must be properly developed before thinking about how to start your own jewelry business.
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6.1 Competitive Analysis
Our biggest competitive advantage will be the quality of our innovative products. Our products will be attractive, eye-catching and will be offered at comparatively lower prices as compared to our competitors. In addition to that, our second biggest competitive advantage will be our exceptional customer service. We will make sure that our customers get the best products which also suit their budget. As with the customized products, we will make revisions until our customers are fully satisfied. Our location is also one of our biggest competitive advantages since we will be based in downtown which is considered an ideal location for starting a jewelry business. Another important aspect is that no jewelry store offers jewelry repairing and resizing services within a 5 km circle from us which will also increase the number of visitors to our store.
6.2 Sales Strategy
After carrying out a detailed analysis, our experts came up with the following brilliant ideas to advertise and sell ourselves.
- We will emphasize on our search engine marketing efforts to ensure a strong web presence.
- We will get featured in the local news or on a certain website by a popular blogger to increase our popularity.
- We will advertise our jewelry store in relevant business magazines, newspapers, TV stations, and social media.
- We will offer a 5% discount on our products for the first month of our launch.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
Personnel plan is also an important component of a good jewelry store business plan. The personnel plan of our company is as follows.
7.1 Company Staff
Nick will act as the General Manager of the company and will initially hire following people:
- 1 Accountant for maintaining financial and other records
- 2 Sales Executives responsible for marketing and discovering new ventures
- 4 Designers for designing the jewelry
- 8 Artisans for manufacturing, repairing, resizing and polishing jewelry
- 3 Assistants for helping with day-to-day operations
- 1 Technical Assistant for managing the company’s official website and social media pages
- 4 Customer Representatives to interact with customers and record their orders
7.2 Average Salary of Employees
The financial plan covers all the expenses needed for the startup so you must develop it before starting your own jewelry business. The financial plan should craft a detailed map about the cost of inventory, payroll, equipment, rent, and utilities needed for the startup and how these costs will be covered by the earned profits. It is recommended that you hire a financial expert for guiding you how to start a gold jewelry business and make an accurate financial plan for your company.
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||10.00%||11.00%||12.00%|
|Long-term Interest Rate||10.00%||10.00%||10.00%|
8.2 Brake-even Analysis
8.3 Projected Profit and Loss
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
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